FCS RE Himalayan Chain Resort (IFC-38208)

Countries
  • Nepal
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 26, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
HIMALAYAN CHAIN RESORT PVT LTD
The holder of the loan, grant, or other investment.
Sectors
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 1.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 4.20 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 4, 2017

Disclosed by Bank Apr 7, 2017


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Project Description
The proposed project consists of an IFC A loan in Himalayan Chain Resort Pvt. Ltd. ("HCR", the "Company" or the "Borrower") in order to support the expansion of its current chain of three lodges to a total of nine lodges along the Gokyo Lakes Trail and Everest Base Camp Trail in the Khumbu/Everest region of Nepal. HCR has been operational since 1996 and owns and operates three lodges along the Gokyo Lakes Trail. HCR is a family owned company with 75% shares owned by Dawa Steven Sherpa and remaining by other family members (collectively (the “Sponsors”). The owner of the Company is a World Wildlife Fund (WWF) climate ambassador and has been felicitated by WWF, International Union for Conservation of Nature (IUCN), World Commission on Protected Areas (WCPA), International Rangers Federation (IRF) and International Climbing and Mountaineering Federation (UIAA) for his efforts to promote conservation ethics in the mountains and to draw international attention to climate change and its effects in the Khumbu and other mountain communities. HCR is proposing a strategic expansion program in order to consolidate its market position and offer a more comprehensive trekking experience with good quality lodges offering standard and consistent service. As part of the expansion, the company plans to increase the capacity in two of its existing three lodges (Khumjung and Gokyo) to 50 beds at each lodge, add or lease six lodges at Dole, Macchermo, Dingboche, Debuche, Namche and Lukla and re-develop the lodge at Phakding with 50 beds at each lodge (the “Project”). The lodges will be developed with basic infrastructure such as twin/triple beds per room, dormitory with common toilet and common dining space. Land area for each lodge is/will be less than 0.25 hectares (Ha) at all locations except Khumjung (0.37 Ha) and Phakding (0.92 Ha) and to be constructed as single or double storied (G+1 or G+2) structures having maximum of 30 rooms (50 beds). The existing and the proposed lodges are located within the buffer zone of the Sagarmatha National Park (SNP), designated as UNESCO World Heritage site for Outstanding Universal Value under criterion (vii) to contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance. The buffer zone within SNP, formally declared in 2002, is an area of around 27,500 Ha where private development is permitted and having a population of over 8,000 people. Majority of the residents living in the area belongs to the Sherpa community (listed as Indigenous (Adivasi Janjati) in Nepal). There are already operational lodges at each of the existing and proposed locations and estimated number of operational lodges at each location is as follows: (Khumjung: 15; Gokyo: 9; Dole: 8; Macchermo: 9; Dingboche: 8; Debuche: 3; Namche: 45; Lukla: 35 and Phakding: 15) together with estimated residential population (indicated in brackets) at Khumjung (1800), Phakding (800-1000), Namche (1650), Dingboche (200), Lukla (1200) and Debuche (50 nuns). The project footprint (~3ha) constitutes only 0.01% of total buffer zone.
Investment Description
  • International Finance Corporation (IFC)
Contact Information
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